SPLUNK INC (SPLK) Stock Fundamental Analysis
NASDAQ:SPLK - Nasdaq - US8486371045 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SPLK. SPLK was compared to 282 industry peers in the Software industry. Both the profitability and the financial health of SPLK get a neutral evaluation. Nothing too spectacular is happening here. SPLK is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year SPLK was profitable.
In the past year SPLK had a positive cash flow from operations.
SPLK had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SPLK reported negative operating cash flow in multiple years.
1.2 Ratios
SPLK's Return On Assets of 3.94% is fine compared to the rest of the industry. SPLK outperforms 79.64% of its industry peers.
Looking at the Return On Equity, with a value of 35.62%, SPLK belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.74%, SPLK belongs to the best of the industry, outperforming 81.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 35.62% | ||
| ROIC | 5.74% |
ROA(3y)-7.85%
ROA(5y)-9.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SPLK (6.26%) is better than 79.29% of its industry peers.
With a decent Operating Margin value of 6.34%, SPLK is doing good in the industry, outperforming 76.07% of the companies in the same industry.
Looking at the Gross Margin, with a value of 79.80%, SPLK belongs to the top of the industry, outperforming 81.79% of the companies in the same industry.
SPLK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.34% | ||
| PM (TTM) | 6.26% | ||
| GM | 79.8% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.87%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPLK is destroying value.
The number of shares outstanding for SPLK has been increased compared to 1 year ago.
SPLK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SPLK has been reduced compared to a year ago.
2.2 Solvency
SPLK has an Altman-Z score of 2.98. This is not the best score and indicates that SPLK is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.98, SPLK perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
SPLK has a debt to FCF ratio of 3.15. This is a good value and a sign of high solvency as SPLK would need 3.15 years to pay back of all of its debts.
SPLK has a better Debt to FCF ratio (3.15) than 68.93% of its industry peers.
A Debt/Equity ratio of 4.20 is on the high side and indicates that SPLK has dependencies on debt financing.
The Debt to Equity ratio of SPLK (4.20) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.2 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.62
WACC9.33%
2.3 Liquidity
SPLK has a Current Ratio of 1.62. This is a normal value and indicates that SPLK is financially healthy and should not expect problems in meeting its short term obligations.
SPLK has a Current ratio of 1.62. This is comparable to the rest of the industry: SPLK outperforms 48.93% of its industry peers.
A Quick Ratio of 1.62 indicates that SPLK should not have too much problems paying its short term obligations.
SPLK has a Quick ratio of 1.62. This is comparable to the rest of the industry: SPLK outperforms 50.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 105.68% over the past year.
SPLK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.69% yearly.
The Revenue has grown by 15.38% in the past year. This is quite good.
SPLK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.51% yearly.
EPS 1Y (TTM)105.68%
EPS 3YN/A
EPS 5Y32.69%
EPS Q2Q%48.04%
Revenue 1Y (TTM)15.38%
Revenue growth 3Y23.66%
Revenue growth 5Y18.51%
Sales Q2Q%18.79%
3.2 Future
Based on estimates for the next years, SPLK will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.06% on average per year.
SPLK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.00% yearly.
EPS Next Y5.2%
EPS Next 2Y12.36%
EPS Next 3Y23.71%
EPS Next 5Y16.06%
Revenue Next Year15.29%
Revenue Next 2Y14.66%
Revenue Next 3Y14%
Revenue Next 5Y16%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SPLK is valuated quite expensively with a Price/Earnings ratio of 28.90.
Compared to the rest of the industry, the Price/Earnings ratio of SPLK indicates a somewhat cheap valuation: SPLK is cheaper than 79.64% of the companies listed in the same industry.
SPLK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.47, the valuation of SPLK can be described as expensive.
Based on the Price/Forward Earnings ratio, SPLK is valued a bit cheaper than 75.36% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, SPLK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.47 |
4.2 Price Multiples
SPLK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SPLK is cheaper than 66.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SPLK is valued cheaply inside the industry as 81.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.82 | ||
| EV/EBITDA | 76.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPLK does not grow enough to justify the current Price/Earnings ratio.
SPLK's earnings are expected to grow with 23.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.56
PEG (5Y)0.88
EPS Next 2Y12.36%
EPS Next 3Y23.71%
5. Dividend
5.1 Amount
SPLK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
156.9
+0.39 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners8.43%
Inst Owner Change0%
Ins Owners1.38%
Ins Owner Change0%
Market Cap26.44B
Analysts66.32
Price Target153.96 (-1.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.29%
Min EPS beat(2)30.73%
Max EPS beat(2)51.85%
EPS beat(4)4
Avg EPS beat(4)93.63%
Min EPS beat(4)30.73%
Max EPS beat(4)236.74%
EPS beat(8)8
Avg EPS beat(8)107.12%
EPS beat(12)11
Avg EPS beat(12)109.14%
EPS beat(16)14
Avg EPS beat(16)118.87%
Revenue beat(2)2
Avg Revenue beat(2)7.85%
Min Revenue beat(2)1.65%
Max Revenue beat(2)14.06%
Revenue beat(4)4
Avg Revenue beat(4)4.62%
Min Revenue beat(4)0.76%
Max Revenue beat(4)14.06%
Revenue beat(8)8
Avg Revenue beat(8)6.3%
Revenue beat(12)12
Avg Revenue beat(12)5.84%
Revenue beat(16)13
Avg Revenue beat(16)3.4%
PT rev (1m)0%
PT rev (3m)0.89%
EPS NQ rev (1m)11.63%
EPS NQ rev (3m)30.86%
EPS NY rev (1m)11.32%
EPS NY rev (3m)19.58%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)2.93%
Revenue NY rev (3m)4.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.47 | ||
| P/S | 6.27 | ||
| P/FCF | 26.82 | ||
| P/OCF | 26.22 | ||
| P/B | 35.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 76.39 |
EPS(TTM)5.43
EY3.46%
EPS(NY)5.71
Fwd EY3.64%
FCF(TTM)5.85
FCFY3.73%
OCF(TTM)5.98
OCFY3.81%
SpS25.02
BVpS4.4
TBVpS-4.41
PEG (NY)5.56
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 35.62% | ||
| ROCE | 6.47% | ||
| ROIC | 5.74% | ||
| ROICexc | 11.15% | ||
| ROICexgc | 36.93% | ||
| OM | 6.34% | ||
| PM (TTM) | 6.26% | ||
| GM | 79.8% | ||
| FCFM | 23.38% |
ROA(3y)-7.85%
ROA(5y)-9.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.87%
GM growth 5Y-0.28%
F-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.2 | ||
| Debt/FCF | 3.15 | ||
| Debt/EBITDA | 8.73 | ||
| Cap/Depr | 25.62% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 283.41% | ||
| Profit Quality | 373.63% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 2.98 |
F-Score8
WACC9.33%
ROIC/WACC0.62
Cap/Depr(3y)22.77%
Cap/Depr(5y)55.33%
Cap/Sales(3y)0.63%
Cap/Sales(5y)1.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)105.68%
EPS 3YN/A
EPS 5Y32.69%
EPS Q2Q%48.04%
EPS Next Y5.2%
EPS Next 2Y12.36%
EPS Next 3Y23.71%
EPS Next 5Y16.06%
Revenue 1Y (TTM)15.38%
Revenue growth 3Y23.66%
Revenue growth 5Y18.51%
Sales Q2Q%18.79%
Revenue Next Year15.29%
Revenue Next 2Y14.66%
Revenue Next 3Y14%
Revenue Next 5Y16%
EBIT growth 1Y213.43%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year55.76%
EBIT Next 3Y18.62%
EBIT Next 5YN/A
FCF growth 1Y130.72%
FCF growth 3YN/A
FCF growth 5Y29.25%
OCF growth 1Y124.28%
OCF growth 3YN/A
OCF growth 5Y27.74%